Egyptian motorists are being encouraged to convert their vehicles to run on compressed natural gas (CNG) instead of petrol or diesel.
The government of the North African country is aiming to convert more of its citizens’ cars to CNG or mixed-fuel vehicles, according to Egypt Oil & Gas. In the latest development, the Central Bank of Egypt has announced it is offering loans to participating car owners at just 5% interest, which is significantly lower than the country’s average lending rate of 17.8%.
This move comes after Egypt’s Micro, Small, and Medium Enterprises Development Agency signed two contracts to convert 4 000 cars from diesel to CNG fuel, Natural Gas for Transportation Industry reports. There are already approximately 248 000 natural gas vehicles on Egypt’s roads.
Citing petrol price hikes and the country’s abundant natural gas reserves, Minister of Petroleum and Mineral Resources Tarek Al-Mulla says ‘the wider use of natural gas as a fuel for cars contributes to reducing pressure on imported gasoline and diesel’, adding that the initiative could also result in manufacturing industries, new fuel stations and conversion centres being established.
